* A few days ago, the attorney representing Treasurer Dan Rutherford’s accuser said this to WLS…
“Their standard M.O. (mode of operation) is to work out standard severance agreements.That’s what they do, and they’ve been doing that the last two or three years with employees. So I sent a letter to the general counsel, we openly discussed negotiating a severance agreement for about ten days, then there was this press conference on Friday that came out of nowhere”.
I had already heard about previous severance agreements and had checked into that over the weekend. As I told subscribers this morning, I was told that the agreements had nothing to do with any sort of complaint against Rutherford.
* The Sun-Times followed up…
Dan Rutherford’s office today confirmed that two former employees negotiated severance agreements with the office since the Treasurer took the office in 2011.
However, a spokeswoman said there was no accompanying complaints leveled against Rutherford tied to those severances.
“There have been two severance agreements in Treasurer Rutherford’s office during his time in the Treasurer’s office,” said spokeswoman Mary Frances Bragiel. “But no complaints were lodged by the employees and no complaints were lodged against Treasurer Rutherford in connection.”
That particular angle appears to be a dead end, which, of course, is good news for Rutherford.
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Question of the day
Wednesday, Feb 5, 2014 - Posted by Rich Miller
* Dan Rutherford is going up on the air this week with a “modest” Downstate TV ad buy. No Chicago, according to the Sun-Times…
“We have the resources to bring our message directly to the voters,” said Rutherford in the statement. “No longer will the television and radio space be dominated by a ‘billionaire bully’ who feels his money entitles him to the nomination.” […]
“All the stuff he has ready to go is positive,” Rutherford spokesman Brian Sterling told the Sun-Times. […]
Sterling said there’s no truth to rumors that Rutherford is considering dropping out of the race.
“Almost just the opposite has happened with our volunteer base,” Sterling told the Sun-Times.
“On Saturday we had a volunteer rally in Morris. It was snowing like hell and we had almost 100 volunteers come out. Our supporters are rallying behind him. I don’t think he’s concerned about how this sits with his supporters because I’m sure he’s going to be vindicated.”
* The Question: Do you think Dan Rutherford will still be in the governor’s race on primary day? Take the poll and then explain your answer in comments, please.
survey tools
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Resignation letter published
Wednesday, Feb 5, 2014 - Posted by Rich Miller
* Illinois Review has obtained a redacted copy of the resignation letter sent by Dan Rutherford’s accuser to Rutherford’s chief of staff. See it here.
From the letter…
This resignation is based on the conditions that I was forced to work under, and the refusal to provide for a safe work environment. As you know, Kyle, I have referenced the Treasurer’s sexual harassment and political coercion of employees, including me, to you.
In addition, I have objected to turning the Office of the Illinois State Treasurer into a campaign arm of Dan’s bid for governor. You and the Treasurer have forced this issue repeatedly.
Further, as you are aware there are many other names of men in this administration, that have been forwarded to your attorney, who have all felt Dan’s unwanted sexual advances or inappropriate sexual comments. I beg you to please treat these individuals as victims and do not violate their rights as you have mine.
I came into this office with the highest hopes to reform government. It is a shame that senior management did not share that goal.
Oy.
Keep in mind that these are just allegations and that Rutherford has denied any wrongdoing at all.
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Fun with numbers
Wednesday, Feb 5, 2014 - Posted by Rich Miller
* From Illinois Watchdog…
[Rep. John Bradley’s] panel has already said the state will have about $34.4 billion to spend next year. The current state budget spends $36 billion. But Illinois has $42.6 billion in bills.
Illinois Comptroller Judy Baar Topinka’s office said there are $6.6 billion in unpaid bills either at the comptroller’s office or inside state agencies.
Lawmakers don’t know how they will stretch $34 billion to cover $42.6 billion in obligations. […]
It will likely take a tax increase to make up the rest.
That’s just plain ridiculous.
Adding the entire stack of unpaid bills to next fiscal year’s “must pay” obligation to make the situation look even more dire than it already is and then predicting a gigantic tax increase to pay it all off is fantasy analysis.
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* Sun-Times…
An employee of the right-leaning Illinois Policy Institute sued the two Democratic legislative leaders and their respective press secretaries Tuesday after being denied credentials that would allow access to the House and Senate press boxes.
Scott Reeder, whom the Illinois Policy Institute describes as its “journalist in residence,” claimed in a federal lawsuit filed Tuesday in Springfield that his First and 14th Amendment rights had been violated by the decision. […]
“You are ineligible at this time to obtain a Senate media credential because you are employed by the Illinois News Network, which is part of and an assumed name for, the Illinois Policy Institute,” wrote Eric Madiar, chief legal counsel to Senate President John Cullerton, D-Chicago, in a letter to Reeder rejecting his application for floor credentials.
“As such, the Illinois News Network is not per the guidelines ‘owned and operated independently of any industry, institution, association or lobbying organization,’” Madiar wrote in his Jan. 16 letter to Reeder.
In Tuesday’s lawsuit, Reeder alleged the no-lobbying prohibition has not been evenly enforced since floor privileges were granted to reporters for the Chicago Tribune despite it being a registered lobbying entity in Springfield in 2000 and hiring lobbyists in 2002 and 2003.
Reeder’s lawsuit described his employer, the Illinois Policy Institute, as a not-for-profit, “non-partisan public-policy research and education organization that promotes personal and economic freedom in Illinois.”
* The lobbying issue is mostly a red herring because the Illinois Policy Institute’s attorney wrote a letter to both chamber leaders saying it would not register as a lobbying entity this year.
That’s an interesting development on its own, but let’s move along.
*** UPDATE *** A good point from a commenter…
Madiar’s argument, as I understand it, is in part that there is no meaningful distinction between IPI and Illinois Policy Action, the name under which IPI is now engaged in lobbying. The same people that registered as lobbyists for IPI are now registered as lobbyists for IPA, which in turn appears to be nothing more than an attempt by IPI to pretend that it’s separating it’s “lobbying” activities from its “think tank” activities (God help us all when IPI is busy “thinking,” let alone lobbying).
Under Madiar’s argument, the IPI attorney’s assertion that IPI is no longer engaged as a lobbying entity would therefore appear to be meaningless - again, a difference without a distinction.
Incidentally, it’s interesting to note that IPI’s half-hearted attempt to couch its lobbying activity under a new and separate name follows Rich’s criticism on this blog. Rich called them out, and now they’re trying to shield themselves.
[ *** End Of Update *** ]
* Reeder’s lawsuit lays out his news network’s reach…
In a typical month, 60 to 80 newspapers across the state publish news articles and columns by Mr. Reeder or other Illinois News Network journalists.
On information and belief, in the past year alone the Illinois News Network served 109 newspapers with an aggregate circulation of more than one million.
In fact, many of these newspapers lack statehouse reporters of their own and rely on the Illinois News Network for news reporting on state government.
* More…
Mr. Reeder has never engaged in any lobbying for IPI or any other organization.
Defendants have never accused Mr. Reeder of personally lobbying legislators or other state officials.
Mr. Reeder is and always has been a journalist, not a lobbyist.
Although Defendants have refused to grant Mr. Reeder press credentials, other governmental bodies have granted him credentials.
In January 2014, for example, Mr. Reeder received press credentials from the Illinois Secretary of State, which allow him access to areas of the Illinois statehouse other than the House and Senate floors, and from the United States Supreme Court.
* Getting to the heart of the matter in the House…
The Lobbyist Registration Act and House Rules’ exclusion of journalists employed by “not-for-profit corporations engaged primarily in endeavors other than the dissemination of news” from House press facilities is not the least restrictive means of serving a compelling governmental interest and therefore violates the right to freedom of the press under the First and Fourteenth Amendments on its face and as applied to Plaintiff Scott Reeder.
Defendants Madigan and Brown’s denial of Plaintiff Scott Reeder’s 2014 request for press credentials on the basis that IPI is “neither a press nor a media organization” was arbitrary and unreasonable and violated his First and Fourteenth Amendment right to freedom of the press. […]
Defendants Madigan and Brown’s denial of Mr. Reeder’s 2014 application for media credentials on the basis that IPI “is neither a press nor a media organization” – in the absence of any statute or rule defining “press organization” or “media organization” – violated his right to due process of law.
Defendants Madigan and Brown’s failure to provide any means of impartial review of their denial of Mr. Reeder’s applications for press credentials violated his right to due process of law.
* Senate…
In addition, the Senate Media Guidelines’ rule denying media credentials to journalists whose employers are not “owned and operated independently of any industry, institution, association, or lobbying organization” is not the least restrictive means of serving a compelling governmental interest and therefore violates the right to freedom of the press under the First and Fourteenth Amendment on its face and as applied to Plaintiff Scott Reeder.
* And this is some of what Reeder wants the court to do…
Declare that the House Rules’ exclusion of journalists employed by “not-for- profit corporations engaged primarily in endeavors other than the dissemination of news” from the House press facilities violates the right to freedom of the press under the First and Fourteenth Amendments on its face and as applied to Plaintiff Scott Reeder.
Declare that the Senate Rules’ exclusion of journalists employed by “not-for- profit corporations engaged primarily in endeavors other than dissemination of news” from the Senate press facilities violates the right to freedom of the press under the First and Fourteenth Amendments on its face as applied to Plaintiff Scott Reeder. […]
Declare that Defendants’ denials of Plaintiff Scott Reeder’s applications on the basis of their belief that the Illinois Policy Institute is a lobbying organization violated his right to equal protection under the law;
* He also wants both leaders “permanently” enjoined from barring his press box access and he wants his attorneys fees, costs and expenses reimbursed.
Your thoughts?
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*** UPDATED x1 *** Feeding Madigan’s ducklings
Wednesday, Feb 5, 2014 - Posted by Rich Miller
* As subscribers have known for a while, House Speaker Michael Madigan is backing indicted state Rep. Derrick Smith in his five-way Democratic primary. The Sun-Times takes a look…
“We support incumbents,” Madigan’s longtime spokesman Steve Brown said when asked about the speaker’s endorsement of Smith. “He’s an incumbent.”
The indictment isn’t a factor?
“I believe — let me go back and check — oh, yeah, that’s right, I believe you are presumed innocent until proven guilty,” Brown said. “Isn’t that right?”
Uh, yeah, that’s right.
“Great,” Brown said. “Is that all?”
All right then, we offered you a chance and received no rousing defense of Smith. There was not even faint praise for us to convey to the voters of Smith’s diverse 10th Illinois House District, which covers an area from Lincoln Park to West Garfield Park.
All that matters is Smith is Madigan’s guy, and he hasn’t been convicted.
Smith received support from Madigan in the 2012 primary, but not when Smith faced a third party candidate in the general election because Smith had been ejected from the House by then. Now, he’s back. Madigan will need his vote on various things this spring, so he’s being supported.
It’s just cold calculation. Keep your members well-fed and happy and they’ll follow along.
* Meanwhile, Madigan’s ducklings often say stuff like this, but freshman Democratic state Rep. Kathleen Willis is being more than a bit ludicrous here…
“I’m not going to deny that I have the support of the Illinois Democrats, but they don’t control me,” Willis said. “I value my independence.”
She was plucked by Madigan from almost complete obscurity to challenge longtime GOP Rep. Skip Saviano. She walked a lot of precincts, but the Madigan operation did pretty much everything for her, and that hand-holding continues to this day.
I mean, her Democratic primary opponent raised less than $2K last quarter and yet Willis has a Madigan campaign staffer in her district. That says something.
She was at an event in her district not long ago and confused the state Constitution’s drafting date with the establishment dates for the state’s pension funds, according to a top Democrat who was there and shaking his head in disbelief.
Willis is the perfect Madigan legislator: She loves walking precincts, but is otherwise dependent in almost every way.
*** UPDATE *** Speaking of ducklings…
House Speaker Michael Madigan has too much power, but it’s not clear what can be done about it, state Rep. Sue Scherer, D-Decatur, said Tuesday.
Scherer, speaking to The State Journal-Register editorial board, said she was frustrated that a bill calling for Decatur-based Archer Daniels Midland Co. to bring jobs to the city wasn’t called for a vote in December.
“I felt like I had to support it because of the number of jobs,” Scherer said. “I went to the speaker numerous times and asked him to call it for a vote. For whatever reasons, he didn’t call it for a vote.”
Asked if she thought Madigan had too much power, Scherer simply replied, “yes,” before adding that she does not know what can be done about it. Scherer said the fact Madigan provided several hundred thousand dollars to her 2012 election campaign, along with other staff support, didn’t make any difference.
What a goofy thing to say. She doesn’t know what can be done about Madigan’s power? How about voting against Madigan for Speaker? How about voting against Madigan’s House rules?
I’m just speechless at this response of hers.
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End the lame ducks?
Wednesday, Feb 5, 2014 - Posted by Rich Miller
* From a press release…
House Republican Leader Jim Durkin (R-Western Springs) and members of the House Republican caucus [yesterday] unveiled legislation asking voters to put an end to lame duck sessions of the Illinois General Assembly by moving up the date of inauguration. The proposal also requires the outgoing General Assembly to conclude their work by Election Day.
“You never know what shenanigans are going to be played in a lame duck session. In 2011 under the veil of night, Democrats in the lame duck legislature voted to impose the largest income tax increase on families and employers in the history of our state. Outgoing lawmakers, who are no longer accountable to the voters, should not be approving such controversial legislation,” said Durkin.
“History shows that these post-election lame duck sessions really only exist as venues to pass volatile, controversial legislation with the largest number of outgoing legislators – legislators who have technically already been replaced by the voters from their districts. These sessions are an insult to Illinois voters and need to be abolished,” said State Representative Kay Hatcher (R-Yorkville).
Durkin’s proposal would put on the November general election ballot a constitutional amendment asking voters to move the date of inauguration to the second Wednesday in December, approximately one month following the election. Currently, inauguration is held on the second Wednesday in January.
House Joint Resolution Constitutional Amendment 43 would also prohibit the outgoing General Assembly from convening or acting on legislation unless a special session is convened with the joint approval of the Governor, and each of the four legislative leaders (the Speaker of the House, the President of the Senate, the Minority Leader of the House, and the Minority Leader of the Senate). The purpose of the session must be specified in the proclamation and action limited to the topic identified.
“This would allow the legislature to convene if there was a true emergency such as an act of terrorism or natural disaster,” said Durkin.
* Ormsby’s take…
Essentially, the plan arms the minority party leaders with short-term veto power over any legislative action by the majority leaders and governor.
* Maura Zurick at the Tribune calls the proposal a “futile stab at ending Illinois’ ritual of putting off controversial issues until after an election”…
Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, said the speaker would take the matter “under review, but I don’t know why you would want to tie the legislature’s hands.”
Rep. Lou Lang, D-Skokie, also said Durkin’s intention is to stop legislation when it sometimes can be easier to move along. “We shouldn’t change the Constitution simply because some members are more willing to vote for legislation when they are a lame duck than when they are not a lame duck,” Lang said.
Lots of people hate the lame duck sessions because so many things can happen that can’t happen before an election. But the other side of the coin is that some things just have to get done, so lame duck sessions are invaluable.
Your thoughts?
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Rauner’s myopia
Wednesday, Feb 5, 2014 - Posted by Rich Miller
* Bruce Rauner was interviewed by the Daily Herald editorial board this week…
The Winnetka businessman, in a meeting with the Daily Herald editorial board Tuesday, said not every member of the Illinois House and Senate is “corrupt” but said it’s “mostly true.”
Yet, “I want to work with the legislature to drive results, and I’ll be down there every day they’re in session.”
Sigh.
* But this is the quote I want to get to…
“Probably a third, maybe more, of the Republicans in Springfield have sold out to the government union bosses,” Rauner said.
This shows just how “My way or the highway” Rauner is. Anybody who disagrees with him has “sold out” to the other side and are “corrupt.”
* Back in the day, when Jim Thompson, Jim Edgar and George Ryan were building state facilities, the governors put them in Republican areas. Lots of state workers are Republicans, many of the older workers got their jobs through GOP patronage or connections.
Not to mention the unionized local employees, like teachers and university workers.
* So, these Republican legislators whom Rauner so despises come from areas where being a Republican and a union member is the thing to do. Voting to harm large numbers of their fellow district residents is neither in their personal DNA nor their political makeup.
Dismissing his fellow Republicans as corrupt puppets of union bosses is completely ridiculous.
* Phil Kadner makes some good points today as well…
Rauner hammers away at teacher unions, saying they are at fault for failing students. Yet, those unions are present in every successful suburban school district in Illinois.
Maybe schools could be run cheaper without teacher unions, but I don’t buy that unions necessarily mean worse schools. And I’ve always found it interesting that schools located in the wealthiest suburbs almost always pay their unionized teachers top dollar.
It seems to me those school districts, like the one in Winnetka, where Rauner owns a house, could clearly demonstrate that money doesn’t matter by paying their teachers less than any other school system in the state.
The students likely would still do well because they come from homes with tremendous advantages and where education is valued highly.
But I understand why they don’t want to experiment with their kids’ lives, just as I understand why Rauner, Emanuel, Obama and Daley made the choices they did.
It’s always other people’s children who are the guinea pigs, the ones who can’t get their kids into schools like Payton College Prep.
Discuss.
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Caption contest!
Wednesday, Feb 5, 2014 - Posted by Rich Miller
* From Scott Stantis…
* Image deleted. Here’s why…
Dear Mr. Miller:
I am writing on behalf of Chicago Tribune. We own copyrights in the cartoons of Scott Stantis, a Chicago Tribune employee.
It has come to our attention that one of Mr. Stantis’s cartoons has been republished on your website without a license:
http://capitolfax.com/2014/02/05/caption-contest-172/#comments
We ask that you please remove Mr. Stantis’s cartoon from your website and refrain from any unlicensed republication of Mr. Stantis’s cartoons in the future.
Thank you in advance for your compliance with the foregoing request.
Sincerely,
Mike Hendershot
Senior Counsel
Chicago Tribune Company, LLC
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Turn on the Wayback Machine
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* Erickson reaches back into the archives to rebut Dan Rutherford’s claims that his cleanliness has never been questioned in more than two decades in office…
In 2002, while he was serving in the Illinois House, Rutherford used his campaign funds to buy a district office in Pontiac and then routinely paid workers in the office out of his state-paid account and his campaign fund.
The practice raised red flags with one watchdog group that said the arrangement could make it hard for voters to determine if there was a conflict of interest in the operation.
Rutherford, who was in the midst of a successful run for a seat in the Illinois Senate at the time, said his employees were not mixing politics with their taxpayer-funded duties. […]
At the time, analysts said the fact that Rutherford had co-mingled his campaign- and taxpayer-paid staff showed the lack of a strong “firewall” designed to ward off potential ethical problems.
Rutherford told The Pantagraph at the time that he had cleared the building arrangement with state election regulators, but a check of how other state lawmakers handled their district offices found few others who organized their offices in the same way.
Out of thousands of campaign funds in Illinois, the Illinois Campaign for Political Reform said only two other politicians were using a similar set-up.
Those other two were Rosemont Mayor Don Stephens and Cicero Town President Betty Loren Maltese.
Oops.
* However, it should be clearly noted here that using campaign funds to pay for state services is totally allowed under the law. State funds can’t pay for campaign activities, but people can use their campaign funds to subsidize public services. It actually saves state money if done properly and above board.
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* Steve Chapman complains about Bruce Rauner’s performance in yesterday’s Tribune editorial board meeting…
After promising big spending cuts through pension reform, he was asked how much his plan would save in the first year or two, and he couldn’t give even a rough number. If he had been in the Senate when Gov. Quinn proposed $1.3 billion in spending cuts, which required closing dozens of state prisons and mental health facilites, would he have voted for them? He refused to give a “yes” or a “no.”
Would he revoke the expansion of Medicaid the state undertook last year, as encouraged by the federal health care reform? “We have a Medicaid disaster,” Rauner replied, while declining to say he’d cancel this enlargement. Repeal same-sex marriage? He’d submit that to a voter referendum, and what he’d prefer is “not important.”
I’d like to think that if he became governor, Rauner would be fearless in tackling the state’s pressing problems. But on some of the toughest issues before us, he’s AWOL.
Except for that goofy minimum wage stumble, this is a guy who has mostly kept his eye on the fall election. Yes, he has to evade some things to avoid angering the GOP base, and he’s made his share of errors, but he is more focused on November than any of his Republican opponents, including…
Oy.
*** UPDATE *** Full quote…
“The number one issue I run into when I travel around to manufacturing plants particularly, when I ask them, ‘How’s it going?’ They say, ‘I can’t hire my people back.’ They say, ‘They’re enjoying — I’ll use — their unemployment insurance. And I can’t get them back to work.’ So we’ve gotta motivate people to get back into the workforce.”
In a phone interview after the debate, Brady would not say which manufacturers have said people enjoy their unemployment benefits and are not motivated to return to work.
Rutherford, in responding to the unemployment question at the debate, related the problem to Chicago’s gun violence. Dillard was cut off for time purposes without answering the question.
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* David Ormsby has a long post on a new proposal to revamp school funding…
“The disparity between school districts that have resources and those that don’t is only getting worse, meaning too many children are being denied an equal opportunity for a quality public education,” Manar stated.
Manar’s plan would combine the state’s current funding sources, which each have their own rules, regulations and paperwork, into one funding formula that would account for school districts’ funding needs. The committee recommended ending Chicago’s individual block grant.
The majority of state school funding is provided through General State Aid, which is distributed based on school districts’ needs. But schools also receive separate funding through grants to programs, including special education and transportation, which are not distributed based on need.
* As does Jamey Dunn at the Illinois Issues blog…
. The goals as stated in the report are:
Make use of a single funding formula.
Provide additional funding to at-risk, special education and English-language learner students through the single formula.
Hold districts and students to higher standards.
Require districts to provide greater clarity on how funds are expended.
Guarantee that all districts receive a fair amount of minimum funding from the state.
Ensure that districts retain the same level of funding as under the current funding system for a period of time once a new funding system is adopted.
Include an accurate reflection of a district’s ability to fund education programs within the district.
Equalize taxing ability between dual districts and unit districts.
Review the financial burden placed on school districts through instructional and non-instructional mandates.
Provide additional transparency regarding the distribution of education funding.
The group plans to emphasize equity with a focus on more sunlight in education budgeting at both the state and local levels and an assessment of costly requirements placed on schools by law. “We had significant discussion about the cost of mandates to local school districts and how we can better address those costs on the legislative level,” said Manar, who is from Bunker Hill.
* From Kurt Erickson’s take…
The group found that the majority of state aid flowing to school districts is not based on whether a district can afford to pay for it out of local property tax dollars.
“The disparity between school districts that have resources and those that don’t is only getting worse, meaning too many children are being denied an equal opportunity for a quality public education,” Manar said.
But revamping the formula could mean some districts will get fewer state dollars, triggering turf battles among lawmakers and potentially dooming the proposal.
For example, state aid for Chicago schools is handled differently than funding for downstate schools. If the state’s largest city is in line to see a drop in state aid, members of the House and Senate could ignore Manar’s call for change.
* Sen. Daniel Biss gets the last word…
Illinois’ education funding system is so broken that the state is now sending school districts nearly random amounts of money. For the last three years, aid to schools has been prorated across the board, which is among the least thoughtful and most regressive ways of dealing with a budget shortfall.
That’s why I’m thankful to the members of the Senate Education Funding Advisory Committee for spending the last six months thinking through some of the most complex questions we face and listening to those who directly experience the effects of haphazard state aid. I’m very encouraged by the committee’s recommendations. Rolling most types of state K-12 funding into a single formula is the best way to give local school districts the resources they need.
Changing the formula that distributes money to school districts will never be painless or easy. But the committee’s recommendations are a firm step in the right direction, and I’m excited about supporting and assisting the committee this spring as we work toward a formula that does what it was intended to do.
Finally, any formula is pointless unless we fully fund it. Once we come up with a formula we believe in, we must devote enough state dollars to make it work. Adequate state funding for education must be a primary consideration as we address the state’s budget and tax structure.
Thoughts?
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From the Department of the Completely Obvious
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* Press release…
Illinois is among the eight worst states in the country in long-term budget planning, according to a major new report from the Washington, DC-based Center on Budget and Policy Priorities.
Illinois, a state with chronic budget problems, should adopt a set of proven fiscal planning tools that that could help it weather difficult economic times, build an attractive business climate, and make government more effective and efficient, the report finds.
The report examines whether and how well states use ten key fiscal planning tools that fall into three broad categories:
A map for the future: the budget and accompanying documents should include a detailed roadmap of the budget’s immediate and future impacts on the state’s fiscal health.
Professional and credible estimates: standards and sufficient oversight are needed to guarantee that these analyses of the budget’s impacts are professional, credible, and prepared without political influence.
Ways to stay on course: mechanisms should be in place to trigger any needed changes during the budget year, before too much damage is done.
Fiscal planning tools not used at all in Illinois include independent consensus revenue estimates for the coming fiscal year, current services baseline budgets, five-year revenue and spending projections, and a well-designed rainy day fund.
The study is here.
…Adding… The governor’s office points out that Gov. Quinn will be doing some long-term planning when he rolls out his five-year budget blueprint in March. Good point.
Also, the governor’s office clarified something last night via text and I didn’t see it until just a few minutes ago. The budget address has been delayed 8 times since Gov. Jim Edgar’s administration, not 13 as claimed yesterday.
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Question of the day
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* Perhaps the biggest news from this morning’s IMA candidates debate…
Republican governor candidates Bruce Rauner and Kirk Dillard opened the door today to consideration of broadening the state sales tax to include services as part of a comprehensive overhaul of Illinois’ tax structure.
“I think it should be in the mix. I’m not prepared to say that’s the answer,” said Rauner, who added that it should be “on the table” in “looking at our entire tax code.”
Dillard, a state senator from Downers Grove, also said he was open to consideration of a broadening of the sales tax. “Maybe,” he said, adding that it would be part of a review of state taxation similar to what Rauner was proposing.
State Treasurer Dan Rutherford and state Sen. Bill Brady of Bloomington were against the idea.
* The Question: Should Illinois tax services? Take the poll and then explain your answer in comments, please.
survey tool
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* Sun-Times…
A new spot that’s hitting TV and radio this week attacks three out of the four gubernatorial primary candidates, sparing only Winnetka venture capitalist Bruce Rauner.
A source with knowledge of the buy said the group — Mid-America Fund — spent roughly $180,000 on broadcast, cable, and radio for this week.
I checked with the State Board of Elections this morning and was told that state law requires disclosure within 10 business days of the formation of the PAC.
As we’ve already discussed, the PAC’s ads began running last Friday. So, it could be next week before we see any state paperwork.
But since this is a 501c4 group, it’s doubtful we’ll ever know who is actually funding the ads.
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Ives: “I’m extremely influential”
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* The Daily Herald interviewed the two candidates for the 42nd House Republican primary, Freshman Rep. Jeanne Ives and Adam Johnson…
“In her time down in Springfield she has not successfully sponsored a single bill that has become law,” Johnson said, while GOP representatives from five neighboring districts have introduced and passed multiple bills in the past year.
Ives confirmed that none of her bills has become law, but argued she filed important, “tough bills” and made comments at committee level that affected legislation that was passed.
“I didn’t go down there to pass Bring Your Parent to School Day. I filed only landmark legislation that will actually do things in Illinois,” she said, while other freshman representatives filed “fluff legislation” that passed.
Ives pointed to a pension bill she filed that would have prohibited members of select state boards or commissions that rarely meet to accumulate pension credits. She said it passed out of the House, but was grabbed by a Democratic senator who refused to pass it off on third reading.
Still, Johnson said Ives has been described as “perhaps the least influential member of the Illinois House,” a quote he took from a comment Rich Miller, a blogger for the website capitolfax.com, made on one of his posts last August.
Ives said Johnson was being “disingenuous, or essentially lying” about someone calling her the least influential because it was from an anonymous comment on a left wing blog website.
In December, Miller wrote a post titled “Careful what you say,” in which he said he did make the comment and notes Johnson’s use of the quote in a news release announcing his candidacy.
Regardless, Ives said she believes she is serving her constituents well.
“The truth is, I’m extremely influential down there, which is why they want to make me sit down and be quiet,” she said. “I went down there to represent the taxpayers of District 42 and I’m doing a great job doing it. The truth is the Democrats don’t want me to have success.”
A left wing blog site? Kinda shows where Ives is on the spectrum.
And “extremely influential”?
Oy.
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Rauner’s charter schools
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* This revelation probably isn’t as bad as it first looks…
Bruce Rauner’s family charity has contributed $800,000 to the scandal-tarred United Neighborhood Organization in recent years, including $750,000 to help expand the Hispanic community group’s network of 16 charter schools in Chicago, UNO records show.
When Gov. Pat Quinn temporarily cut off state funding to the charter operator last year, UNO put $285,000 of the Rauner Family Foundation’s money toward paying bills the state would have covered.
The state and local government gave UNO a whole lot more than Rauner. And that second sentence needs to be fleshed out a bit more…
Rauner says he wasn’t aware UNO used some of his money to make up for the suspended state funding. He also says he didn’t specify how the contributions were to be spent. When Quinn later resumed the grant, UNO replenished the account it had created with the donations from Rauner, UNO records show.
The donations from the Rauner Family Foundation included $250,000 in December 2011, $500,000 in December 2012 and $50,000 in 2010. According to the foundation’s tax returns, the $50,000 contribution was to “improve Hispanic neighborhoods/community.”
If it can be found that Rauner donated to UNO after the allegations became public or even after the governor temporarily shut off the spigot, then that’s something.
Otherwise, he gave UNO some money. UNO put the money into a special fund. UNO suddenly needed cash, so it tapped that fund.
* Another story…
Sarah Howard thought Bruce Rauner was an angel who would rescue her financially troubled, academically struggling charter school in East Garfield Park.
Instead, the would-be Republican candidate for Illinois governor took control of the Academy of Communications and Technology Charter School that Howard started, dumped her as executive director, suspended operations for two years, then turned it over to a national charter school operator.
“Bruce was coming to us, saying he was going to help us strengthen and improve our campus,” says Howard, who now works for the University of Chicago’s Network for College Success. “And instead what happened is he approached it like it was a turnaround that needed to be wiped out, sort of like a venture capital deal — come in, put in new leadership and change everything around. […]
“With the exception of high school test scores, we were outperforming our neighborhood school on every other metric and, in some cases, beating the CPS average,” Howard says. “I’m not saying we were knocking it out of the park, but we were serving the neighborhood well and were improving.”
* But…
Howard and a business partner started ACT in 1997 at a former Catholic elementary school at 4319 W. Washington, offering classes to seventh- through 12th-graders. But ACT’s test scores lagged behind those of many public schools. That led the Chicago Board of Education to deny ACT’s application to renew its charter for five years. The board gave ACT a two-year extension, then two more extensions, through June 2011.
Charter schools are supposed to be innovative and are supposed to go away if they don’t perform up to standards. I don’t think it’s the case that this was a great school by any means, so I’m not sure I can say that this was a bad move by Rauner. But it sure is an insight into how he’d likely govern if elected.
* Another…
On TV, Bruce Rauner has barraged voters with a commercial in which he boasts that he “helped start charter schools” to fight failing educational programs.
Other than giving millions of dollars, though, the Republican candidate for governor doesn’t have much to do with running the Noble Network of Charter Schools, which includes a school that bears his name, according to the head of Noble.
Rauner has “very little” involvement in running Noble’s 14 high schools, which include Rauner College Prep on the near West Side and one middle school, says Michael Milkie, the former Chicago Public Schools math teacher who founded Noble and is now its superintendent and chief executive officer.
Rauner, a venture capitalist and member of Noble’s 20-member board, says: “I’ve never had a role in day-to-day operations at Noble or, frankly, in almost anything I get involved with. My role is generally as a board member or kind of an adviser providing overall strategic advice or feedback. . . . I go to the campus that they named after our family once a year, maybe twice a year, to talk to students and the principal, things like that.”
Discuss.
26 Comments
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Twisting in the wind
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* I take no position yet on the current allegations against Treasurer Dan Rutherford. However, the fact that he’s unable to publicly fight back because the employee won’t officially resign until Feb. 10th bothers me. And the fact that the alleged victim here is remaining anonymous, while understandable on one level, is bothersome on a political level.
So, we get stories like this one…
The employee told the Sun-Times in an interview on Monday that his complaint entailed harassment claims and pressure to do political work. The employee said he found it “unconscionable” that Rutherford characterized his complaint as being tied to political chicanery, rather than taking it seriously. […]
“If the individual decides to speak about his status or reveal his identity, that’s up to the individual,” she said. “The treasurer’s office has done all it can to protect the privacy of the individual even after the individual’s lawyer requested $300,000.”
Pardonnet repeated Rutherford’s assertion, made last week, that an internal review “found no basis in fact for the allegations” against the treasurer.
To that, the employee said: “the extent of the investigation was Dan saying ‘it’s not true.’”
We don’t even know what the specific allegations are. All we’re getting is incredibly vague stuff like this, and while I don’t want to defend inappropriate or unethical behavior, Rutherford is at a major disadvantage here because it’s very difficult to respond to a personnel matter.
* Then again, even if we knew the exact allegations, it could be just a “he said, he said” situation and how does Rutherford disprove that? Word on the grapevine is that others may talk, but that’s just the grapevine. If anything is substantiated by someone else, however, Rutherford is gonna be in major trouble here. Maybe even fatal.
* On the other hand, I am growing more uncomfortable with this “independent” investigator hired by Rutherford. From an e-mail sent to employees yesterday…
Please be advised that employees of the Illinois State Treasurer’s Office may be contacted by Mr. Ron Braver, an independent investigator. If any employee is contacted, any time away from the office necessary to meet with Mr. Braver will be excused.
Rutherford’s people say the investigator will be asking people who have said they’re witnesses or corroborators. But what protections do these folks have? If they refuse to answer to avoid self-incrimination, what will happen to them? Rutherford’s people seem surprised at this question. Of course, they say, nobody’s gonna get fired or punished over what they say or refuse to say.
Under what authority is this investigator operating? Rutherford’s people say the treasurer has the authority to order up such an investigation. But what are the limits of this guy’s powers? No real answer.
Rutherford may be serious about getting to the bottom of this. But this probe could also be used to smoke out his interior enemies.
Here again, Rutherford appears to be at a disadvantage. I’m not sure how to resolve this in the time available before the primary. On the one hand, I feel quite bad for the guy. On the other, we do have to take this stuff seriously and he will eventually have to answer questions. But how? And when?
* And the Tribune has a valid point today…
Which brings us to Dan Rutherford, who is mishandling a crisis he initiated Friday when he called a news conference to deny allegations that hadn’t been voiced elsewhere — and that he wouldn’t discuss. Rutherford accuses Rauner of fomenting this unspecified situation as an attack on him — “I believe in my heart Mr. Rauner is responsible.” Yet Rutherford offers no proof. Rutherford has a strong record and, as the only player in this foursome who has won statewide office, is a strong contender. But his quest to make the front-runner in this campaign the villain will boomerang if he can’t produce evidence: During the most challenging moment of his government career, Rutherford needs to assure voters that he’s not challenging the ethics of an opponent as part of a desperate political distraction play.
Discuss.
117 Comments
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* Tribune…
Former Mayor Richard Daley, his family and members of his administration did not try to influence the investigation into the 2004 death of David Koschman, a special prosecutor concluded in a report released today.
The special prosecutor, Dan Webb, interviewed Daley, eight of his relatives and numerous others as part of a grand jury investigation into whether a Daley nephew, Richard “R.J.” Vanecko, received preferential treatment from Chicago police or Cook County prosecutors handling Koschman’s death. Read the report here.
Vanecko, 39, pleaded guilty Friday to involuntary manslaughter and was sentenced to 60 days in jail, followed by 60 days of home confinement and then 2 ½ years of probation. The guilty plea stemmed from his April 2004 confrontation with David Koschman in the Rush Street night light district, a verbal altercation that turned violent when the much larger Vanecko punched Koschman in the face, leaving him with injuries he died from 12 days later.
At issue in the report was how authorities handled the investigation into the incident, both at the time and when the case was reopened in 2011 after an investigation by the Chicago Sun-Times raised questions about whether police had intentionally concealed evidence because of Vanecko’s clout.
* Sun-Times…
Former Chicago Mayor Richard M. Daley, one of his top aides and others in Daley’s Chicago Police Department knew “shortly after the incident” that the mayor’s nephew was involved in the drunken confrontation that led to David Koschman’s death — even though police reports say detectives didn’t learn of the nephew’s involvement until 18 days later.
“According to Matthew Crowl [former mayoral deputy chief of staff for public safety], he was informed by someone at CPD of Mayor Daley’s nephew’s involvement in the incident on Division Street and immediately informed Mayor Daley in person of what he had heard,” according to a 162-page special prosecutor’s report released Tuesday about how police and prosecutors handled the case of Richard J. “R.J.” Vanecko, Daley’s nephew.
“While Crowl was uncertain of the exact date, he believed he became aware of the Koschman matter shortly after the incident,” the report continues. “It was not clear whether Mayor Daley was already aware of the incident when Crowl made the disclosure to him.”
In his interview with investigators for special prosecutor Dan K. Webb, Daley himself “did not recall Crowl advising him of the incident,” the report says.
Daley “stated that he learned about the Koschman incident ‘sometime’ after it occurred, although he was unable to say exactly when. Mayor Daley also stated that he had made it clear to his staff and the public that because he was Vanceko’s uncle, he had recused himself from any involvement in the Koschman matter.”
14 Comments
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Today’s numbers
Tuesday, Feb 4, 2014 - Posted by Rich Miller
* From COGFA’s newly released study of business tax incentives…
According to the latest information from the Comptroller’s Tax Expenditure Report, businesses in Illinois benefited from over $1.15 billion business related tax expenditures.
* The largest tax expenditures reported in the FY 2012 issue were:
1. Sales Tax Expenditures:
* Manufacturing and Assembling Machinery and Equipment Exemption ($183 M)
* Retailer’s Discount ($121 M)
* Rolling Stock Exemption ($74 M)
2. Corporate Income Tax Expenditures:
* Illinois Net Operating Loss Deduction ($219 M)
3. Other Tax Expenditures:
* Sales for Use Other than in Motor Vehicles Exemption ($116 M)
According to a Department of Revenue report, in 2012, Enterprise Zone, High Impact Business, and River Edge Redevelopment Zone tax incentives resulted in the State foregoing approximately $115 million in tax revenue.
In the aggregate, businesses receiving tax incentives reported creating 4,671 jobs and investing approximately $3.7 billion in 2012
13 Comments
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